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tv   Street Signs  CNBC  August 20, 2014 2:00pm-3:01pm EDT

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is the fed celt to finally make a change? we're going to find out in seconds. a fed and stock market are -- mandy, obviously one of the weirdest things i have ever seen. >> me too as well. on course for the biggest weekly gain in four months. the s&p 500 is less than five months away from the all-time closing high, which is 1987. you have the s&p there, 1984, all very good years. write it down, folks, and gold did below $1300. the dollar is holding around a high for nearly a year. the headlines straight away with steve liesman. >> july meeting, many agree at the fed they should move sooner if their goals are me more
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quickly. in order to move up that schedule. it was a strong debate within the federal reserve about the labor slack in the economy. many concluded that it did not perform better than anticipated and broad measures , that was the term used in the recent statement, have become better than expected, have improve. the labor markets have moved noticeably closer. they use the word normally to describe labor markets. somewhere it's typical to define labor slack and that it has to move. they have to change their definition of labor slack to reflect the improvement. the concerns about the economy come from housing, the consumer spending over the up side, risks to inflation, some saying they're concerned about it and the finance system they say we are well contained. there was a joint meeting of the federal reserve board and the
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federal market committee. those are slightly separate committees, and they discussed policy normalization. that's the word they use when they raise rates. they agreed interest on competent reserves would be the primary tool and they would use others as needed. the balance sheet should be reduced gradually and predictably, and they seem the smallest possible balance sheet over the long run. guys, back to you. so the fed seems to be discussing this issue of eventually raising rates maybe sooner than the market expects. not a real impact at all on the dow or the ten-year treasury. let's go back to something that mandy teased before the show. this is honestly one of the most weird things i have seen in a long time. stay with me for just a second. okay. in february of last year when the minutes, last february, 2013, the s&p 500 opened at 1530. in august, basically the same day last year, the july minutes were released.
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the s&p popped and over at 1650 a change of 7.9%, but get this. when the s&p 500 opened this february on the minutes day, it was an 1838. well, today we opened at 1981 for a change of -- you guessed it -- 7.8%. in other words from the same releases in the exact same time period, the s&p 500 has gained exactly the same amount. let's bring in dom chu. dom, i literally stumbled across this while trying to -- in your historical highly skilled opinion, a, says a meaningful correlation, on b a lucky coinciden coincidence? >> you know, leave it to you, brian, you're the only guy that could find a stat like that -- >> pure luck. >> i don't know what it was. whatever you were doing, kudos to you.
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let's talk about it. first of all, two observations, so it's hard to make any kind of a real statistically significant link between the two, though it is very interesting. the one thing i would offer also is that yes, we are in a slightly different at least situation now than we were back then. also remember the leadership last time around is a bit different than this time around. we've seen this kind of horse races, jockeying for position anywhere from energy stocks to material stocks to, you know, some utility stocks, trying to get the lead on who will lead the overall market higher. you also have a very different situation with regard to what's happeningwood fed, right? we're talking about ratcheting down qe. we're starting to eliminate excess parts of that bond purchase program. you just heard steve liesman say, hay, we need to race rates faster than anticipated. as to whether or not these
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markets, remember, they had a pretty good run. brian, i've got to say i'm intrigued. that's gotten me curious about how the next three, four months -- >> and that kind of popped from circle to circle. and then mandy said i was an idiot. >> exactly the same. that's the freaky thing. thanks a lot for that, dominic. >> how the u.s. labor market has healings. i see that treasury prices have
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been slips. >> it's healing faster than anybody would possible imagine, i guess. you do get a glimpse of something going on in treasuries when janet yellen mentioned job and the jobs market. that's a pretty decent move, but the winner far and away was the fulcrum, the entire yield curve where all the flattening takes place. from 157 to 163, currently at 162. you saw a two-basis point move in tense and 30s pretty much slept through it. but it seems as lo investors are a bit nervous as they look
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participati participation. >> by the way, the dow has weakened a bit, mandy. where are we standing right now? >> standing at 16,929. the nasdaq was already on a slight negative bias. which only just seconds ago lit real was only about four points from its four-point high. >> going back out to jackson hole wyoming. i wish i was there with you, steve, by the way. jake cob, i'll just start off, so i'll say it. when do we get some real action?
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>> it is the reelection. once you realize that policy involves both communication, measures qes and all the rest, it is in this regard that this communication is a reelection. the mood has changed. that is a very important message. >> you were saying some people will soon need to communicate out there to the market, when do you think that communication will come? sooner rather than later? or maybe even friday? i don't know.
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over this issue they call normalization, and. it said sometime this year is what they want. it depends on when you think the fed might enact this normalization. ty believed it was sometime summer 2015 -- i may have to ask jacob that is. is it time to start thinking about a, and the answer would be sooner rather than later we would have to get that communication. >> i wouldn't be surprised if the timeline moves up a bit. if you trust the fed is a group of responsible policy makers, who always and have said already when things normalize, we will
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act on rates, then basically if they start raising rates, it means they project and give you the message not to fear it. >> the way we read the fed minutes, normally when we saw we can react more quickly, if the data comes in better, there's another line we could act more slow will you. and paying a little more attention to the possible trajectory. >> maybe. interest rates are so low. not raising rates, but coming to
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a situation where possible are both -- where would you lower it? >> both the fed and many other central banks are waiting eagerly where they could race and lower rates. at this stage it's a one-way bet. >> quickly, steven, many members think rates should come earlier, but take i inside the fed. there's ten voting members. we have heard for years with greenpass it's what he wanted if nine other members said we want to raise rates, but janet yellen said no, who wins? >> i think always following the chairman or the chair in this case is the best way, but i don't think yellen is going to be able to enact the policy in which she doesn't have the
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support of the members. i hate to say this. listen to me the next few days. we have a number of presidents we'll be interviewing, and we'll listen carefully to where they stand in this whole debate. i don't know if i have to time to throw it to jacob. what do you think yellen wants here? >> i don't think we will be able to draw such a strong distinction between what yellen wants and the rest of the fed. it's a group of consensus, of serious discussions, and now joining the fed, i think we will see a very consense discussions. >> that's a big change at the fed. >> thank you so much for joining us. as brian was saying, the market has slipped just a bit. but interesting what we are
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sealing, treasury prices hitting their session lows. in reaction to the minutes, the dollar also hitting session highs. i think the market is taking this as quite hawkish. >> what are the implications for the market that you see, not just today, but going over future weeks and months? >> i mean the phet is in a spot where they have to do a good job of communicating their policy. . >> i think we've got some of those questions answered today in the machines, which is good news, but not enough specifics. so i think around some of the bigger issues of which rate are
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they going to targets? the excess reserve rate? arer are they going to signal a -- those kind of questions i think might largely be answered. markets will be concerned. i'm not surprised at the reaction today simply because it's been set up to be dovish. so the reaction in bonds does not surprise me. >> it's a bit like death and tacks i get that the markets hates uncertains, but as jacob frankel was saying, maybe this should be taken as a -- so maybe the market will take it as a positive when it happens as well.
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the fed has said that they're going to raise rates when the economy is able to withstand it. growing at around 4%, if it continues to grow at 4%, i think the fed will be thinking about hiking rates in the middle of next year. so that's key. the party should realize that, but still that uncertainly factor has always once they get used to it, you had some disruption first, but then the stock market took off after first. >> here's the thin, we're listening to street signs, global audience, by the way. you pick up your phone. and what do i do? what are your advisers going to advise based on this?
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there any change in strategy? not right now. we've been advising our advisers to advise their clients to not expect -- in the last 30 years over the next 30 years. it's got through a period where they lower rates to zero. i think that's going to be key next week, next month, the next decade. those are the conversations happen right now. >> thank you very much. it is not politics as usual. this time it's a republican accusing the democrats being the fat cat.
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the question is why does a company that wants to drive people around need a super washington lobbyist? we'll try to answer, coming up. don't just visit rome. [ thud ] visit tripadvisor rome. with millions of reviews, tripadvisor makes any destination better. here at fidelity, we give you the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and e-trade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity.
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is indeed $17 billion with both if i were and state authorities. in the run-up to the 2008 financial crisis. and provide consumer relief. the agreement would require the bank to acknowledge making misrepresentations about the quality of the residential mortgage-backed securities. the largest one so far, jpmorgan for $13 billion. back to you. uber-, the car app. apparently wants to be more popular with lawmakers as well. they hired david plouffe.
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jimmy p. jimmy, an interesting story. why do you care, but does it -- in this day and age, you've got to have a lobbyist. it's a must-have. we're just not generating as much of those. why? one reason might be it hearting to turn that so, listen, so you'rer did what it has to do. it has a destructive new, very disruptive innovation. there's going to be losers, and the loser are fighting back, and those are the existing tax cabs. >> it's sad, right, jim, all
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those regulatory burdens. there's no real guaranteed 100% success that uber will be able to expand. you can look at that as a market signal, they still think those will have some value down the road. that's what uber will do. to have a political campaign city by city to make sure they can save a legal unregulated product. it make me think that uber believes it may have some tough times ahead. >> i think you're absolutely right. they're going to lose these
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fights, and they're also in sort of a death struggle with lyft as well. it doesn't come more, you know, influential or bigger heavier hitter than plouffe. if you're going to go for a guy who rungs sort of these big campaigns, that's the guy you go for. >> got to leave it there, jim. always agreed to hear your commentary on our show. see this, $100, brian? it's not the same in kentucky, as it is here in new york. we're about to show you where this $100 baby goes the farthest. >> and later on "street talk" one airline stock a wall street firm thinks has about 20% up side. [ dog barks ] ♪ [ male announcer ] imagine the cars we drive... being able to see so clearly... to respond so intelligently and so quickly, they can help protect us from a world of unseen danger.
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for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. see car insurance in a whole new light. call liberty mutual insurance. is caused by people looking for parking. in a city that's remarkable that so much energy is, is wasted. streetline has looked at the problem of parking, which has not been looked at for the last 30, 40 years. we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then there's a mesh network that takes this information, sends it over the internet so you can go find exactly where those open parking spots are. the collaboration with citi was important for providing us the necessary financing; allow this small start up to go provide a service to municipalities. citi has been an incredible source of advice, how to engage with municipalities, how to structure deals,
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and as we think about internationally citi is there every step of the way. so the end result is you reduce congestion, you reduce pollution and you provide a service to merchants, and that certainly is huge. once again, bank of america reportedly reaching a $17 billion settlement with regulators over the sale of mortgage-backed securities. it's been reported for a while this appears to be the confirmation, again just one headline from a.p., probably wonder why the stock is not up more. this was a $5 stock a couple
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engineering. >> yeah, report settlement. how much will this, a $100 note really get you? that answer depends on where you live. so tax foundation took a fresh look at your true spending power, and these are the findings. the states where you can get the most bank for your buck where $100 buys the most stuff, mississippi, arkansas, missouri, alabama and south dakota are at the top there with your hard-earned cash will get you the least, no real surprises here, washington, d.c., hawaii, new york, new jersey and california. so the bottom line here, brian, making more money may not necessarily mean you're in the wealthier, so just look at it this way if. if worked in kentucky making $40,000 a year, you would need to make $53,000 in you lived in washington, d.c. to have the same spending power. joining us is alan cole, from the most expensive place in the
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country, apparently, washington, d.c. great to have you with us today, alan. >> one thing that we learned putting together this data is the income and inequality among states is absolutely smaller than we usually think of it, looking at traditional measures of income. that is to say, states with low income are compensated with a low cost of living as well. this is also true, and while it's -- it's certainly the case that the nonincome tax states do pretty well by this measure. >> certainly, if you just roll that back to what makes a big difference of how those states
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tax you, doesn't it? >> yeah, absolutely. some people would try to convince me, yes, we get less for our money in certain ways, but you have better straunds, more parks, it's important to know this data is just about putting together a set of goods, adding them up and then seeing what the price of those goods is. so it's very difficult to adjust for quality. it because states are too different. they also have coke nuts, i think.
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and i was crucial senate rates, it is now the who does not. john, it's getting ugly. including here. isn't retiring, but we had a front-runner for a while. racing of minimum wage, which is very -- until we introduced a different kind -- in an out of state fund-raiser about his iowa colleague, chuck grassley. you might have a farmer from
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iowa, who never practiced law, serves as the next chair, because if democrats lose the majority, chuck grassley will be the next chair. that provided a huge opening for his candidate, joanie ernst, who raised on a farm to talk about where she came from. >> now, drove, deep ties to iowa himself. >> i think it's just laughable. i have lived in iowa my entire life. i got my education in the state. i met my wife in this state.
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i have not lost touch with iowa. to push back on the nuts and bolts. he is hitting hard on joanie ernst for entertaining the idea of private accounts for social security and accusing her of squishing us on ethanol, which is something she denies, guy. >> thank you, john. in the meantime, the big apple is busting records. we're talking about the stock. >> topping the $1 mark today. and all-time high split adjusted. plus does this mean football teams go much, and you will see it here only if you stick around. so do that. financial noise
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it is hump day street talk. news, views and analyst recommendation. we are on the run here today. >> that's right. cowan believes it will try to increase the profitable, and
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they note it could include a management change. so about 20 a barclays. it does remain a concern. the competition, in their words, is brutal, but it makes the stock market more compelling, currently trading a 24.5. another food chain in the same call. >> noting that the growth remains strong at panera. they do add that it could be choppy, that's their word, because investments that the company is making, their target boosted to ten bucks. i'll let you do the math. herb's herding, at deutsche bank, look at that. ouch. >> you know, hurts so good? this ain't one of those times. it's on the back of the
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guidance, but deutsche bank clearly saying don't buy the stock on the weakness. the price tart is 25. stock is at 28.5. some firms trying to defend the name, not deutsche bank. >> under the radar name of the day is just making it over -- it operates a fleet of tankers. >> big oil tankers, great big ships. 51 to be exact. one of the biggest in the world is called the mill len numb, is owned by tsakon. the ticker is tnp. just keep in mind not a lot of analysts covering they games. it's a 5.19% right now. now to talking numbers. >> shares hitting an all-time high today, as we mentioned. market cap back above $600 billions. put the pinkie in the mouth and
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say it. >> john, i'm going to begin with you. apple saying more it's a temperaturically driven stock. if so, where you do you see the stock headed technically? >> i think we're headed quite a bit higher over the intermediate term, but i'm a bit concerned over the near term. i was here at the end of march, talked about wanting to buy a break in apple. that first chart shows that apple was two weeks after i was here. that was a break i was looking for. we're up 38% since then in five months. we're up again the major resistance level. so to me, i would be looking to buy some kind of a break here. at $94.95. considering what's happened, i think that's very feasible.
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is this going to be a case of like buy the rumor and sell the fact? >> i don't know. i'm sitting here fingering my iphone 5 thinking about is there any conflict of interest think i talking about apple. i'm not going to give a particularly definitive commentary here. i think the -- it has an incredible ecosystem. i have completely bought into this long-term blackberry user, but i do think they are apparently in a hardware business, even with the massive success of itunes and the app. store, they do need to keep creating that next flavor product, otherwise it does all get commodityized. but i'm always wary of the next release. we said the 5s was fine, but not
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amazing. how many more releases can have that response before either some other company or people turn somewhere else. i think we need to constantly be on the lookout. they have a franchise, which is incredibly powerful and simultaneously vulnerable. >> got to leave it there. sounds like a note of caution there. >> you know, i tweeted out yesterday under the title of worthless but interesting that apple is now worth six times more than every football, baseball, basketball and hockey team combined. combined. >> it has no value at a cocktail party. you know i love that kind of stuff. >> be sure to check out the online edition of "talking numbers" as well. >> still ahead, the concussion controversy, speaking of football. still a big financial liability for the nfl? we'll talk about it. >> josh lipton is about to join us with a look at how wearable
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the ibm cloud is the cloud for business. a quick look at the markets there for you. in reaction to the minutes, it
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seemed like a bit of a hawkish knee-jerk, 1984 is what we're eyeballing for the s&p 500, three points from the all-time closing high. settling for $17 billion. market largely expected, the stock is up only four cents right now. most of wall street sees about two bucks of up side. that is the concussion issue, that is why the league has -- part of his tech driver series on wearables. josh? >> well, sully, you know, the
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nfl said there were 228 consuggestions last sees season. the injuries in the long-term risk concerning coaches, players, parents, but scientists say that actually solution to this concussion crisis could be found in wearable technology. at the lab at stanford university, researchers designed these special mouth guards for football players. they measure how quickly the head moves during the inclusion. the mouth guards give coaches a better sense of what's happening to their players out on the field. >> it's a bit difficult to see when something has a brain injury. it's not like a broken bone. it can help you identify those who may have been injured or at risk, and you can removed them from the field of play. >> outside of university, there's also similar wearables
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now being commercially available, this is a five-point sensor placed in the helmet liner, coaching then using they handheld devices, they're alerted when the players suffer big hits. now used by high schools as well as some 25 colleges. it gives us the eyes inside the helmet. it allows us to monitor the student athletes throughout the entire course of the game. >> now, all contact sports, of course, come with some risk, but they're the not going away. the idea is this wearable technology gives us a better understanding of concussions that maybe that leads to changes in rules or equipment that could help prevent brain injuries out on the field. back to you. >> thank you so much for that. let's bring in rick heart row, what do you think of the new trends? >> josh gets it right on the head. there are significant dollars,
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by the way, that are being generated and allocated for research on all aspects of safety, tackling, concussion prevents, pitchers on the mound. it's not just football, but -- the concussion settlement, but how about the people going to the games to watch these people. you talk about high tech, the trend we are looking at for high tech, by the way, is getting people off the couch to go to the stadiums as well. the stadium that opened, levi's stadium, 40 gigabytes per sect of high-tech wiring access and wifi, four times the nfl minimum standards. it's 8500 seats, and 165 suites, the bottom line of that stayedup is the best stadium money did buy. it's a term called decouching.
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you've got to get people off their couches into the stadium and watches on mobile devices. by the way, the 49ers in their first opening preseason game, they didn't read the memo, which is that you have to play well. they lost 34-0 to denver. >> it was preseason, rick. they're not showing anything. i'm not even a 49ers fan and will admit that. is this enough to decouch? football really doesn't have a lot of probable. you watch baseball on tv they're focused on the field, because god forbid the camma zooms out and there's eight people on the side. >> no in nascar daytona raising, the new $4 hundred million improvement depending on high tech. they're gig to make that stadium look even better. the bottom line is it's better for everybody. the video is improving. it's on high-def. it challenges you to be better
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as far as what you say and how you say it. >> how we dress. >> the bottom line is you've got to do both. the niners have to show something. now i have to shower. that's definitely what high-def has done. >> they have to show something. >> just cut ticket prices. rick, thank you so much for joining us. >>. >> all right. here's a question. >> okay. i'm ready. >> are you ready? >> the american dream, or the australian dream, still alive and well? >> yes, brian, it is. we're going to show you what paul ryan said about it. >> plus has the nfl gone too far with the new demand to make big singer pay for the right to perform at the super bowl? we'll have details on the cheeky move, next.
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the nfl may soon start charging performers for the right to play the super bowl halftime show. bruno mars did it for free last year.
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according to the "wall street journal" the nfl rooechd out to katy perry,ry an rihanna and co play about this year's game and asked them to pay. with more than 100 million viewers it might be good for the performers. >> what makes me sad is they're forgetting about the people in the seats of who paid a lot of money to go to the game. that's who the halftime show is theoretically supposed to be for and they've already paid for it in their ticket price. >> crazy. they're being greedy. they're getting a double pay. >> the nfl is greedy? forbes out with their annual nfl team valuations list. and check this out. the average team is now worth $1.4 billion. friends, that's up 23% from one year ago. michael, should jerry jones, the owner of the dallas cowboys, go to san diego and l.a. and give steve ballmer a hug because is the clippers purchase, i know it's basketball, also jacking up football valuations? >> it definite lit hly has help.
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mostly i'd would say chicago, new york, you mentioned dallas. absolutely those teams helped a little bit. i think what's going to really push it is the nfl to get teams back to l.a. i think there's a sense of urgency now where within the next two years the nfl is going to announce that two teams are going to relocate to a new stadium in l.a. >> just very quickly i want to break in because one point away from cracking 197 on the s&p, folks, which means we would be back at the all-time closing high. this increase of 23%, biggest year on year increase since 1999. i mean, that kind of increase isn't sustainable, is it, going into future years? >> you know, about 20 years ago when i first rt stayed doing this i asked an analyst, i said, what could stop this increase in values? and he said, oh, he said, meteor rights fees, they can't keep going up like they have. 60% increase in the broadcasting deals and the new deals starting this year. plus on top of that you have an
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expanded thursday night package which cbs. that's going to be worth $275 million this year. a big one that everyone is looking out for is the in one with directv. their current deal, which is the last year of, pays an average of a billion a year. that is likely to increase by at least 40%. >> i got to go back to your first answer because i was cleaning out my sizable ears here and i was thinking you said two teams are going to move back to l.a.? >> yeah. that's what i'm hearing now. >> wait. okay. who? the jaguars? >> no. i don't think the jaguars. my guess would be the raiders and the rams. they're both very portable. >> they both live -- >> expire after this year. raiders were there once already. >> they both used to habitat in los angeles. >> they did. they had a very, very strong following there. could also be the chargers. >> very quickly, is there a team out there that you think is either over valued or under valued? >> bears are the most undervalued team in the nfl. they're not -- barely marketed at all.
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great loyal fan base. easily, easily should be worth $300 million more. >> wow. da bears. michael, appreciate it, buddy. good job chlktsz is it time for more encouraging message from washington about the economy? paul ryan tried some cheerleading here on cnbc today with the pom-poms and all. we'll let you be the judge though when we come back. [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time.
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♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell. get live squawks right in your trading platform with thinkorswim from td ameritrade. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing,
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stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. how do you renew the american idea which is a healthy
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economy with opportunity upward mobility, the condition of your birth doesn't determine the outcome of your life in this country. it's a february noal story, the american idea. but it's under duress. a lot of people don't even think it's there for them anymore. i would argue that our country is prime and due for a great comeback. >> that is possible 2016 presidential candidate congressman paul ryan on "squawk box" this morning. a bit of a more encouraging message about the american dream. >> perhaps talking down the economy is something the republicans were put in the rearview mirror. but, of course, we will see whether or not that sort of pep talk will catch on but we need to hear more. >> we do. country has problems. it's got income inequality, social issues, a lot of problems. there's also a lot to be happy and thankful for. it doesn't hurt to remind the world when we so things going on around the rest of the world that america is not a bad place to live. i like living here. >> it's a good note to end on.
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look at the markets. 1986 for the s&p. closing high, by the way, is 1987. we may still get there. could be a new high after the minutes which were none the less seen as a little hawkish. "cloeti i"closing bell" is next. >> and welcome to the "closing bell." i'm kelly evans at the new york stock exchange where the dow, tyler, in the green pushing 17,000. >> indeed it is. it's the all virginia edition of the "closing bell." i'm tyler matt son in for bill griffeth here at the now darkened cnbc headquarters. we are also watching the -- >> oh, my. >> -- s&p 500, not very far away from the all-time closing high of 1986. that was set just about a month ago, july 24. more signs that the recent pullback was not the big correction that many

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